Kardan to enter debt settlement with series A, B debenture holders

By Kali Hays

New York, June 16 – Kardan NV’s holders of its series A and series B debentures approved a debt settlement with the company, according to a company news release.

Under the settlement, principal payments due in 2015 and 2016 will be delayed by 24 months and will bear additional interest of 1.875% for each series of debentures, so the series A debenture principal will carry an interest rate of 6.325%, and the series B debenture principal will carry an interest rate of 6.775%.

Some unspecified financial covenants and business restrictions will apply until agreed upon relief thresholds have been met, according to the release.

In addition, 10% of Kardan’s issued and paid up shares will be allocated to the debenture holders, along with a cash payment of £750,000. Distribution of dividends will be prohibited until 75% of the outstanding par value as of Dec. 31, 2014 has been repaid.

The settlement also allows the debenture holders to nominate a member of Kardan’s board of directors, which will require approval at a general meeting of the company’s shareholders.

Kardan’s chief executive officer, Shouky Oren, said that once the settlement is in place the company “can fully focus on continuing to improve the results of our operating subsidiaries and thus the value of the Kardan Group as a whole,” according to the release.

Kardan, based in Amsterdam, is an investment company focused on real estate, financial services and infrastructure.

© 2015 Prospect News.
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